If you are an employer, can you confidently answer that question?

I was working with a client recently and asked this. Here is what they said: “We target the 63rd percentile for base pay and the 75th percentile for total cash compensation. We target the 75th percentile for long-term incentives as well.”

They are a global company that has a culture of high reward for high performance. Employees are expected to deliver a lot of high-quality work very fast. The work environment is complex, and you must have exceptional stakeholder influencing skills to succeed.

I have another smaller client that targets the 25th to 50th percentile for base salary and is trying to get total cash compensation up to 50th percentile over the next few years.

They don’t have the revenue or profit to increase pay quickly. The good news is they are open to changing how they have done things for the last 50 plus years and know they need to improve their employee experience. And they know that the employee experience will directly impact how their customers are served.

Your company culture and pay philosophy influence each other. Too often I see the company culture talked about and there isn’t enough attention paid to how the rewards are designed and implemented. If you want to change the culture of your workplace, look at your rewards.

What are you rewarding?

What are you tolerating?

And why?

#companyculture #rewards #payphilosophy #humanresources #incentives #yougetwhatyoureward #yougetwhatyoutolerate